Welfare system will ‘explode’ with out reform, says Ian Murray

The UK’s welfare system will “explode” and change into unaffordable if it isn’t reformed, Scottish Secretary Ian Murray has mentioned.

Sir Keir Starmer’s authorities has been pressured right into a sequence of climbdowns on its advantages invoice by Labour backbenchers at Westminster.

Murray insisted that “actually optimistic, progressive” adjustments have been being made to repair a “damaged” system.

It comes after First Minister John Swinney accused the UK authorities of taking an “completely appalling” strategy to reform.

Labour ministers have been pressured to U-turn on some cuts to Common Credit score and plans to introduce stricter eligibility guidelines for private independence fee (Pip) claimants.

The adjustments to Pip wouldn’t have straight utilized in Scotland, the place the profit is being phased out for a devolved various however may have affected the sum of money allotted to Holyrood.

Regardless of being gutted of its most vital measures, Murray mentioned the invoice would make vital adjustments to Common Credit score and employability help, and that Pip can be reformed after the publication of a authorities assessment late subsequent yr.

“These are actually optimistic progressive reforms,” he informed BBC Scotland Information.

“If we do not reform the welfare system it should explode when it comes to there being unsustainable financially for the taxpayer, but additionally we’re writing a whole bunch of hundreds of individuals out of the workforce.”

Greater than 120 Labour MPs – together with 12 from Scotland – had threatened to vote down the invoice till preliminary concessions have been made.

4 Scottish Labour MPs – Brian Leishman, Irene Campbell, Tracey Gilbert and Euan Stainbank – in the end voted in opposition to the ultimate invoice, which was additional watered down.

Requested what he would say to Scottish Labour rebels, Murray replied: “The one factor that unites us all is that the welfare system is damaged and it must be reformed and subsequently we now have to do this correctly.”

He mentioned that concerned serving to folks again into work whereas “taking care of those that may by no means work and have probably the most extreme disabilities”.

“These are two key Labour worth ideas,” Murray informed the BBC.

“We’re the occasion of labor, we’d like to verify we have a system in place that does not entice folks on advantages, entice folks in poverty, and provides them these pathways again into work.”

The Scottish secretary accepted that it had been a “very tough” yr for the Labour administration, however mentioned that the arduous selections taken since final July would bear fruit and that individuals would really feel the distinction of their pockets.

He added he was “100%” assured the prime minister and chancellor can be of their jobs come the subsequent normal election.

Treasury spending on working-age advantages is forecast to rise by £27bn to £75.7bn by 2030. The UK authorities says that’s unsustainable.

The unique welfare reforms have been anticipated to save lots of £5bn a yr by the tip of the last decade. The last-minute concessions are anticipated to have considerably lowered any financial savings, and will have added some further prices.

The Scottish authorities can also be dealing with questions on the way it will fund its extra beneficiant social safety system.

Holyrood spending on social safety is already £1.2bn larger than the block grant funding it receives from the Treasury. The hole is forecast to develop to £2bn by 2030.

Swinney mentioned the UK authorities’s dealing with of the welfare reforms had been “stunning”.

He mentioned the unique reforms would have “primarily preyed on a few of these weak inside our society”.

The primary minister known as for Labour ministers to seek out different methods to lift funds, suggesting adjustments to revenue tax or the Treasury’s self-imposed fiscal guidelines.

The Common Credit score and Private Independence Fee Invoice is because of come again earlier than the Commons subsequent week.

Labour rebels have warned they might nonetheless vote it down if the federal government doesn’t comply with by on its concessions.